Cost recovery is the recovery of unused grant
funding that has been left on the table.
While the notion of cost recovery is simple, the
rationale for cost recovery is complex and it
requires meticulous research and a definitive
financial strategy . Therein lies the dilemma in the
application of cost recovery to regulatory,
administrative and information activities.
The economic rationale for levying user charges is to
improve the efficiency with which departments and
agencies make use of limited resources. To the extent
that user charges finance activities previously funded
through taxes, those limited tax dollars should be
reallocated to activities that benefit the taxpayer or to
reduce debt.
However, in many cases, there is a lot of money left on the table which is untapped, resulting in
burdening the taxpayers and the only reason is lack of information, flawed internal controls, poor cost
allocation plans and misleading indirect cost rate calculations to mention a few.
In summary, the objectives of uProfyt towards any Cost Recovery approach is to achieve:
Automation and Integration
01
Efficient usage of
government services
through impact based
cost allocation plans,
research backed indirect
cost rate application and
stringent internal
controls
02
Ensuring that the costs of
services that primarily
benefit the general public are
financed through budget
allocations; ensure that the
costs of services primarily
benefiting specific subsets of
the population are recovered
from those who benefit or
cause those services.
03
Ensure consultation
between agencies and their
clients before introducing
or amending user charges,
and on a continuing basis
thereafter.
uProfyt Checklist
Cost allocation plan
Indirect cost rate proposal
Any costs remaining on the table
Researching for grant Portfolio
Reviewing grant contracts
uProfyt Core Services
01
Review grant portfolio for opportunities
02
Develop cost allocation plan
03
Internal department meetings
04
Client review and approval
05
Meetings with city council etc (if needed)
06
Submission to the appropriate funding agency
07
Negotiation with the funding agency
08
Indirect Cost Rate Approval from Funding Agency
Final Steps
01
Submitting Indirect Cost
Rate Approval to funding
agency
02
Ensure compliance
03
Leverage the cost rate
towards available funding
04
Draw funding to recover
cost
We're here for U
Related services
Cost Management
& Recovery
Cost Management and Recovery is
your right and the impact of letting
it go is a burden on taxpayers.
